In a rapidly expanding ecommerce industry, successful businesses must distinguish themselves from the competition. Of course, with so many online stores out there, attracting the attention of consumers is easier said than done. Fortunately, you have access to countless strategies and tools to not only attract customers but also retain them.
One of these tools is package protection. Read on to learn what package protection is, how it improves your purchase experience and post-purchase experience, and how to add package protection to your ecommerce store.
What Is Package Protection?
Package protection, also known as shipping protection, is a form of shipping insurance that protects customer orders from loss, damage, and theft during shipping. During checkout, customers have the option to add package protection to their order for a small fee. If they decide to add package protection and end up encountering a shipping issue, they simply file a claim with the insurance provider for a replacement or reimbursement.
Many package protection services now also offer real-time tracking features that help customers monitor their shipments throughout the delivery process, further enhancing the post-purchase experience.
In addition to providing peace of mind for customers, package protection helps your business’s bottom line by fostering customer trust and loyalty, increasing conversion rates, and minimizing loss due to shipping mishaps.
This service is more relevant than ever. When ecommerce started to explode, shipping issues became much more common—one organization saw a 107% increase in lost package claims and a 78% increase in damage claims.
As package loss, theft, and damage numbers continue to increase, you can take action to protect your customers and your business.
How Does Package Protection Work?
Package protection works by allowing shoppers to insure their purchases for a small fee, which is based on their order value. If a customer who has opted in encounters a shipping issue, they can file a claim through the protection provider’s website, providing necessary documentation like photos or order details. Once the claim is reviewed and approved, the customer receives a replacement item or refund.
To add package protection to your store, simply choose a solution that integrates with your ecommerce platform. For example, Norton Shopping Guarantee is available for both Shopify and WooCommerce stores.
These solutions are generally fast and easy to integrate. Some of them, including Norton Shopping Guarantee, are completely free for merchants to download and use.
Once you’ve chosen and launched your package protection solution, customers will have the option to add insurance during checkout. It’s as simple as that!
This offering enhances customer trust and satisfaction by providing peace of mind and a hassle-free claims process; at the same time, it reduces the financial burden and logistical challenges for your business by outsourcing issue resolution to a third party.
How Package Protection Impacts the Customer Experience
Consumers face a variety of risks when shopping online, and many of them have had bad experiences. Packages get damaged by the carrier, lost in transit, or stolen from the doorstep. Merchants send the wrong product and refuse to offer a refund. Scammers take people’s money (or personal information) and never ship anything.
You know your store is reliable and trustworthy—but your customers don’t. Adding package protection to your online store helps them feel more confident when making a purchase. It relieves the anxiety and worries they might feel, leading to a better experience with your business.
Package protection improves the customer experience in two important ways: boosting trust and giving shoppers peace of mind.
- Trust. When customers see that a brand offers package protection, they feel more comfortable making a purchase. They know they don’t need to worry that the business will ghost them if they encounter a shipping issue.
- Peace of mind. Package protection reduces the risk of online shopping, ensuring that customers won't suffer financial loss or inconvenience if their package is lost, damaged, or stolen by porch pirates.
In short, package protection enhances both the pre-purchase experience—by minimizing shopper anxiety and indecision—and the post-purchase experience, by reassuring customers that they won’t lose money if their product disappears or gets damaged.
But these aren’t the only benefits of shipping protection. Your brand directly benefits in many other ways, including greater revenue and fewer financial losses.
In the next section, we’ll explore five reasons why adding package protection to your website is a no-brainer.
Why Add Package Protection to Your Ecommerce Store? 5 Ways It Can Increase Profits
Package protection isn’t mandatory, but it offers several advantages for your business. Here's how it can increase your profits:
1. Increase Cart Conversions and Decrease Cart Abandonment
Shoppers often hesitate to complete purchases due to concerns about shipping or product safety. Package protection can ease these worries by offering customers added security at checkout. This reassurance that their order is safeguarded from loss, theft, or damage can be the deciding factor that leads them to click “Buy.”
By addressing customer concerns early in the buying process, this protection increases cart conversions and decreases abandonment, leading to higher sales.
2. Gain More Repeat Customers
Protecting customers' purchases not only boosts their confidence but also builds long-term loyalty. A poor shipping experience—such as a lost or damaged package—can lead 85% of customers to never shop with that retailer again. Package protection offers a seamless claims process handled by professional representatives, ensuring a positive experience even when issues arise.
When customers see that your store takes care of them during delivery problems, they’re more likely to return and recommend your business to others, leading to more repeat purchases.
3. Save Money on Replacements and Refunds
Replacing or refunding lost or damaged items can quickly become costly. With package protection, these financial burdens shift to the protection provider, saving your business from having to cover the cost of replacements or refunds.
Since customers pay for the protection at checkout, your business gets the benefits—such as reduced costs associated with shipping problems—at no extra expense.
4. Reduce Chargebacks and Negative Reviews
Unresolved shipping issues often lead to chargebacks or negative reviews, both of which can damage your business’s reputation and bottom line. Package protection offers a clear path for customers to file claims for lost, stolen, or damaged packages, reducing the need for chargebacks.
Additionally, customers who experience fast resolutions are less likely to leave negative reviews, which helps maintain your store’s reputation and avoids costly chargeback fees. By protecting your shoppers at checkout, your business gains these benefits without any added expense.
5. Streamline Processes
Package protection not only saves your business money but also valuable time. By outsourcing the claims management process to the protection provider, your customer service team is freed up to focus on higher-value tasks.
From the customer’s perspective, package protection simplifies the entire process. After adding protection at checkout, they are covered for shipping issues. If something goes wrong, they can file a claim easily, and the approval process is fast, leading to a swift resolution.
Keep Your Packages Safe With Norton Shopping Guarantee
As an online merchant, shipping plays a vital role in the relationship you have with your customers. When you sell online, you’re missing out on the direct contact your customers could have with brick-and-mortar competitors. But when someone’s package is delivered, that is your direct contact. It’s your first physical impression, and in the world of business, we all know how important it is to get that right.
If you’re looking for a way to enhance your delivery experience, consider adding package protection to your store with Norton Shopping Guarantee with Package Protection by EasyPost. In addition to building buyer trust with affordable, comprehensive shipping insurance, Norton Shopping Guarantee offers other benefits for buyers, including a $1,000 Purchase Guarantee, $100 Lowest Price Guarantee, and Identity Theft Protection.
Get in touch today to find out more and decide if package protection is the next step in growing your business.
